3 Things You Should Know About Small Business: August 31
NEW YORK (TheStreet) -- What's happening in small business today?
1. Win up to $25K in the Small Business Challenge. Add a new player to the growing list of crowdfunding websites, and this new player should get your attention. EarlyShares.com is launching its Small Business Challenge, where it is offering a combined $50,000 to the three small businesses that show the best promise of being able to grow and hire new employees.
The voting competition kicks off Saturday and runs through early November. Each company is required to make a pitch for how the contest awards will help the business create more jobs. The top three that demonstrate the most potential for growth and job creation -- as determined by public voting and a panel of judges - will be announced on Nov. 9. The first place winner wins $25,000; second place $15,000; and third place winner wins $10,000.
Businesses with less than 100 employees, as well as entrepreneurs with startup ideas, are eligible to participate.
Through the competition, EarlyShares is trying to increase awareness and education about crowdfunding, since businesses won't be able to use this method to gain capital until next year when reforms in the JOBS Act approved by Congress to stimulate private funding for small companies kick in, the company says.
2. Yes, you can get a bank loan. Fashion designer and Taiwanese immigrant Eddie Wang, owner of Toula, a women's apparel manufacturing business, has a secret for getting financing. Slowly build good credit and build up a strong relationship with your bank, according to Immpreneur.
It might seem obvious but it's not so easy, particularly for immigrant business owners.
Wang's first rule of thumb, pick a bank and stick with it. For Wang it was Barnett Bank which eventually was acquired by NationsBank (now Bank of America (BAC) ). His first quest for a bank loan came up short but the bank did offer to lend him money against his accounts receivable. And while this wasn't his first choice of capital, he saw it as an opportunity to secure the money he needed to stay afloat while waiting for clients' payments, the article says.